Performance Management: Getting Results that Count. Maura Harrington COO / VP of Consulting The Center for Nonprofit Management
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1 Performance Management: Getting Results that Count Maura Harrington COO / VP of Consulting The Center for Nonprofit Management
2 Why Performance Management? Your interest Perceived need Data the good and the bad Value Your experience 2
3 You can only manage what you measure. 3
4 Today s Session Key components of performance management and tools to assess How to build a culture in your organization that will: Embrace data and performance measurement Support & optimize continuous improvement data-driven and results-driven decisions and actions. 4
5 Performance Management Performance Measurement defined as a specific definition of the [organization s] primary objectives and how to measure the achievement of these objectives. Only focuses on measurement, not judgement. Performance Management defined as a specification of the processes that generate [organizational] performance and hence a specification of how management decisions can control [organizational] performance.
6 How is PM Different From Other Types of Evaluation? Difference in goals and uses Difference in processes Difference in who is involved Complements other types evaluation
7 PM: Why It s Worth the Effort Better chance of achieving outcomes for clients Higher quality services, and more effective and efficient administration Increased staff engagement and less burnout Leaders spend less time troubleshooting at level of program delivery Greater efficiency and cost-effectiveness through streamlining of systems and processes Ability to communicate WHY programs are effective, not just WHETHER
8 Origins of PM Military use during circa WWI, WWII & Ford Motor Co. rating scales to measure and enhance individual performance 1950s > Deming / Drucker / Peters Recognize the value of employees as untapped resources of knowledge for improving quality Emphasis on quality, innovation and employee empowerment, feedback and measurement-based management Also, notions of executive cockpit and business intelligence
9 Performance Management Model Source: Retrieved February 13, 2012, from
10 Measurement Framework: Strategy Map Mission perspective* Financial perspective Customer perspective* Customer satisfaction Improve brand image Increase customer perception of value Internal process perspective Improve customer relationship management Improve service quality Learning & growth perspective Increase workforce skills Increase innovation 10
11 Relationship With and Usage of Data 11
12 Measurement Framework: Strategy Map Mission perspective* Financial perspective Customer perspective* Customer satisfaction Improve brand image Increase customer perception of value Internal process perspective Improve customer relationship management Improve service quality Learning & growth perspective Increase workforce skills Increase innovation 12
13 Performance management is an ongoing process It is a repeated cycle, that requires Real time assessment of milestones, performance targets, and ultimately, outcomes Adjusting strategies as needed 13
14 The Big picture/ Components The role of data and learning in organizations Uses of information Managing performance regularly Staff involvement, engagement Common understanding of processes, quality Identifying issues Solving/or designing solutions problems Assessing readiness, capacity Monitoring and sharing
15 We measure performance for a variety of reasons Accountability To those we assist To those who fund our programs Increased Effectiveness To have a lasting impact To make changes to systems and cultures Increased Efficiency To make the best use of limited resources including time and money
16 Uses of Information Improve programs Quality of service Planning Direction to staff Training needs Tool to recruit Increase accountability Public confidence Fundraising efforts Assure best use of funds Compare locally and across regions 16
17 External interests In performance Federal Policy and Management Contractual obligations in which public human service agencies that view contracts as public investments in nonprofits Funders Looking for a return on their investment in the form of financial and program accountability Academic Journals / Influential Research Institutions Increased attention on outcomes, cost-benefit
18 Benefits of measuring performance Objective Data helpsus to understandhow we re doing It allows ourteams to make better decisions It makes it easier forus to shareour successes (and challenges) with others
19 Four Levels of Performance Mgt Level 4: High Performance Likely social value Strategic data use: capacity to deliver codified services with fidelity and to produce outcomes reliably, and to adjust strategies as indicated Tactical data use: tracks outputs and outcomes Level 3: Managing Performance Presumed Social Value Strategic data use: tracks outputs, measures and tracks outcomes Tactical data use: tracks outputs and outcomes Manages codified services to produce outcomes Level 2: Beginning to Manage Performance Level 1: Not Managing Performance Potential social value Codified services (who, where, what, how, how much, how long) Tactical data use: tracks outputs, measures and tracks outcomes Questionable social value Tactical data use: tracks outputs Interest in outcomes, but mostly collects stories Adapted from David Hunter
20 Sure, PM sounds great, but what does it take to successfully implement and maintain PM over time?
21 The Context of Measurement Organization al Culture Measurement Constraints Measurement Resources Measurement Expectations Measurement System Measures Measurement process Technical infrastructure People Attitudes Motivation Capabilities Measurement Leadership History of Measurement Measurement Communications
22 How Mature is Your PM? PM is widely used by all levels of staff throughout the org The importance and value of PM are widely appreciated PM is generally seen as a good thing Insights from PM are discussed in many forums Time is made available to learn from measurement The org is effective at sharing insights from PM 22
23 Elements of a Learning Organization All staff and stakeholders are invited to contribute ideas and solve problems Accepts calculated risk-taking and experimentation Sees failure as an opportunity for learning Actively encourages ongoing quality improvement Makes time for staff planning and reflection
24 Expanded Role of Staff in a PM Environment DESTINATION: Staff and stakeholders help set SMART outcomes and objectives ROUTE: They create a process map or flowchart detailing how key programs or activities are operated They help identify what high quality looks like in their work They measure progress and quality level They share data and use it to solve problems and increase quality and efficiency
25 Fishbone Diagram STAFFING PROCESSES RESOURCES Causes Issue or Challenge EXTERNAL PLANNING/ KNOWLEDGE MATERIALS/SPACE
26
27 The Capacity Grid Milestone or Performance Target (from process map) Unready Marginally Ready Fairly Ready Fully Ready Contact 50 youth who meet criteria Not sure how we ll do it; no capacity to accomplish this task Some idea of how we ll do it, but few details worked out; little capacity to accomplish this task Pretty good idea of how we ll do it; only a couple of details still need to be resolved; capacity in place to accomplish task Firm idea of how we ll do it; details all worked out; capacity in place to excel in this task Recruit 30 youth attend orientation Not sure how we ll do it; no capacity to accomplish this task Some idea of how we ll do it, but few details worked out; little capacity to accomplish this task Pretty good idea of how we ll do it; only a couple of details still need to be resolved; capacity in place to accomplish task Firm idea of how we ll do it; details all worked out; capacity in place to excel in this task
28 The Roadmap Metaphor Recruit 20 youth Deliver trainings Find housing Youth in stable housing for 6 months
29 A process map is like a recipe that can be shared A process map enables programs to Efficiently pass on knowledge to new staff Expand the program to other sites, or hand over for replication by other organizations Explain to funders WHY something works 29
30 Process Map Sample Performance Target Target Date Contact 50 youth who might qualify August 1 30 youth attend orientation session August youth are accepted into the jobs program September 1 Youth complete initial assessment September 8 20 potential employers are identified October youth complete program February 5 13 youth interview for jobs March youth accept jobs April 1 12 youth receive ongoing job counseling 10 youth still have jobs after 6 months April-May September 1
31 Data Visualization Can Be Simple Particip ant Jan Feb Mar Apr May June 2 X X X X X X 6 X X X 7 X X X X X 8 X X X X 9 X X X X 10 X 11 X X X X X 12 X X X X X 13 X X X X X X 14 X X X X 15 X X X X 16 X X X X
32 Or More Complex
33 Examples of Infographics
34 Ensuring That PM is Useful Grounded in the mission Commitment and communication across the organization Early involvement by key people Integrated with funder requirements Realistic scope Ongoing collection and review Results shared Information systems a natural part of operations 34
35 PM Resources ml The Nonprofit Outcomes Toolbox, by Robert M. Penna Transforming Performance Measurement Dean Spitzer
36 For more information, For a copy of this PowerPoint, check cnmsocal.org/501conferencenext week. 36
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